Crescent Point Energy Chalks Out FY24 & Five-Year Plan, Sees Significant Debt Reduction & More

Crescent Point Energy Corp CPG released a preliminary FY24 outlook and disclosed updated 5-year guidance.

FY24 guidance: The company expects annual production of 145,000 to 151,000 boe/d, with projected development capital expenditures of C$1.05 billion to C$1.15 billion.

CPG plans to allocate around 70% of the budget to its Kaybob Duvernay and Alberta Montney plays, with production from these Alberta assets to grow by roughly 10% by the end of the year.

CPG sees significant excess cash flow of over C$1.0 billion at $80/bbl WTI and projects net debt of C$1.7 billion, or 0.7x funds flow.

The production guidance includes the impact of the recently announced disposition of its North Dakota assets. 

Notably, the company recently lowered its development capital expenditures guidance for FY23 by approximately C$100 million on North Dakota asset sales to a range of C$1.05 to C$1.15 billion. 

5-Year Outlook: CPG anticipates production to increase to 180,000 boe/d by 2028, with growth of 5% per year. 

The company expects to see a cumulative after-tax excess cash flow of more than C$4.3 billion in the five-year at $75/bbl WTI.

CPG anticipates net debt improving to about C$500 million, or 0.2x adjusted funds flow, in 2028.

The company expects to return around 60% of excess cash flow to shareholders via dividends and share repurchases.

"Throughout 2023, our strong results and outperformance have demonstrated the benefits of our improved asset base alongside our ongoing operational execution. This inflection we are seeing in our business is a direct result of our strategy, which is focused on maintaining a resilient portfolio of high-return short- and long-cycle assets. Our disciplined approach is expected to generate sustainable returns and significant excess cash flow for shareholders," said Craig Bryksa, President and CEO. 

Also Read: Crescent Point Energy Q2 Highlights: EPS Down Y/Y On Lower Oil & Gas Sales, Outlook Maintained

Price Action: CPG shares are trading higher by 1.92% at $8.51 premarket on the last check Monday.